Hi everyone,
first post, so a bit nervous! My husband and I have 8 properties, the 1st 5 bought before we'd even heard of terms such as due diligence, capital growth, rental yeild etc. Luckily, it seems like we vaguely considered most of those things anyway, so none have been total disasters so far, though we'd have bought differently if we'd known about Steve's books, API, or this forum.
At the moment we're considering a block of 3 flats returning 8.5% in Coonabarabran. It's a bit hard to research because API doesn't include it in the vacancy rate statistics, and none of the agents can quote vacancy rates either, except to vaguely say "we've only got a handful empty.' The 'Free Report' on Real Estate.com shows a drop in population between 2001 – 2006 – does anybody know where to get current figures?
Just generally, could anybody help with information about the town? I know capital growth won't be great, but we've got a few with a fairly low return but good potential capital growth, and although we have some equity to play with, are running out of serviceability, so we need something with a good return. Even if it never grows, we'd be happy with a decent return and a low vacancy rate. Can anybody help with how possible this might be in Coonabarabran, or even suggest another town or property?
Cheers…..Get the agent to provide the rental history for the last 3 years. These are older units. My view generally (ie in rural NSW) is that there is a demand for cheaper flats that are well maintained. My view with Coona is that it is a good solid town – the rural industries are balanced with the national park and observatory. Generally a safe rainfall area. Have a look at the main street and the cross street Dalgarno. Are there many vacant shops? Improvements to the Newell Highway are making Coona less of a natural midway point for stopping between Brisbane/Gold Coast and Melbourne which might affect motel occupancy rates.
Generally speaking demographically the larger regional cities are growing in population, and the smaller towns are declining. But I would think average household size is also declining ie population decline does not necessarily mean a decline in housing demand.
I think Coona is much safer than towns west of the Warrumbungles. I think your average occupancy rate will depend on the condition the flats are in and how well they are maintained. If the agents think you can get a higher rent – a 10% gross return would equate to $108 a week get them to show you similar flats ie age, construction that are getting those rents.
I spent a number of years in Coona but have not had much to do with it over the past 8 or 9 years.
Thanks for such a quick and helpful response.
Hi again crj,
do you know Hill Street at all? We'll have to buy sight unseen, so I'd be taking the agent's word it is in a 'good' part of town.
Cheers,
ShereeI'm in New Zealand, but the houses on Hill street in Coona look really nice to me. Lovely tree-lined street, big sections, lots of trees on most sections, pretty barron looking though, not much activity or people or cars around ………………
…… use the fantastic resources at hand –>> GOOGLE MAPS
and search on Hill Street, Coonabarabran. You can even search on the actual house number and look at it from the roadside! The internet truly has some MAGIC features!!Have fun!!
Vicky
Give the local police station a call and i'm sure they will be able to give you some information about the area you're looking. Who better to ask. This way you can find out if they have to attend jobs there often.
Good luck
Neve
and search on Hill Street, Coonabarabran. You can even search on the actual house number and look at it from the roadside! The internet truly has some MAGIC features!!
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